Banking, Money and Taxes in Mexico
The large number of modern banks in Mexico make money management fairly easy and st
raightforward for expats; although, large stacks of paperwork often need to be completed to satisfy the ever-thickening Mexican bureaucracy.
Expats must open a bank account at a local branch office, and cannot prearrange accounts from abroad. To initially open the account, expats only need to present identification and proof of a Mexican address, along with an initial deposit.
Expat citizens of the US or Canada worried about the fluctuating worth of Mexico's currency, the Peso, can open an account using US dollars. Other nationalities cannot, although overseas accounts can be accessed via Mexican ATMs. Still, expats needing an account for daily transactions will want a checking account using only pesos as levies from ATM withdrawal fees can add up if used over an extended period of time.
Some international banks, such as HSBC, have branches in Mexico.
Many bank tellers will be able to speak English, but make sure to get any Spanish paperwork translated. ATMs are available throughout most cities, but expats should be mindful of ATM fraud and robbery in the large cities.
Expats should also take advantage of Internet banking when possible, which is offered by most major banks, to save time queuing in long bank lines.
However, most bills need to be paid in cash, and even cheques are often not accepted.
Taxes for expats depend largely on if one qualifies as a resident or non-resident. Residents are taxed on their worldwide income, while non-residents are only taxed on income earned in Mexico. For tax purposes, expats are considered residents if they have their primary home in Mexico. This does not exclude expats from filing taxes in their home countries, although many (including the US and Canada) have tax agreements, protecting expats from paying income tax in both countries.
Expatriate taxes, including tax rules for retired expats and home owners, can be confusing, and it is advisable to hire professional help from experienced expat tax advisers.
raightforward for expats; although, large stacks of paperwork often need to be completed to satisfy the ever-thickening Mexican bureaucracy.
Opening a bank account in Mexico
Expats must open a bank account at a local branch office, and cannot prearrange accounts from abroad. To initially open the account, expats only need to present identification and proof of a Mexican address, along with an initial deposit.
Expat citizens of the US or Canada worried about the fluctuating worth of Mexico's currency, the Peso, can open an account using US dollars. Other nationalities cannot, although overseas accounts can be accessed via Mexican ATMs. Still, expats needing an account for daily transactions will want a checking account using only pesos as levies from ATM withdrawal fees can add up if used over an extended period of time.
Some international banks, such as HSBC, have branches in Mexico.
Many bank tellers will be able to speak English, but make sure to get any Spanish paperwork translated. ATMs are available throughout most cities, but expats should be mindful of ATM fraud and robbery in the large cities.
Expats should also take advantage of Internet banking when possible, which is offered by most major banks, to save time queuing in long bank lines.
However, most bills need to be paid in cash, and even cheques are often not accepted.
Taxes in Mexico
Taxes for expats depend largely on if one qualifies as a resident or non-resident. Residents are taxed on their worldwide income, while non-residents are only taxed on income earned in Mexico. For tax purposes, expats are considered residents if they have their primary home in Mexico. This does not exclude expats from filing taxes in their home countries, although many (including the US and Canada) have tax agreements, protecting expats from paying income tax in both countries.
Expatriate taxes, including tax rules for retired expats and home owners, can be confusing, and it is advisable to hire professional help from experienced expat tax advisers.
